In 3Q16, the total (SP + enterprise) SBC market grew 13% Y/Y to reach $292 M. The enterprise segment (E-SBC) led the growth with 23% Y/Y growth. SIP trunking and hosted unified communications services continue to drive demand for both premises-based and, increasingly, cloud-based SBCs.

Compared to 3Q15, the service provider segment (SP-SBC) grew 6% to $169 M, and accounted for 58% of the total market. SP-SBC segment growth was due to a recovery in the wireless/VoLTE segment which grew 24% Y/Y as operators continue to invest in their network to support VoLTE, RCS, and other IMS-based services.

In 3Q16 Cisco continued to lead the E-SBC market with 28% share, while Oracle, AudioCodes and Edgewater also showed strong Y/Y growth. Oracle led the SP-SBC segment during the quarter and dominates the wireline segment. The fast-growing wireless/VoLTE segment, however, is more fragmented with Ericsson, Huawei, GENBAND, Nokia, and Mitel, all having significant positions.